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Net Income Total Debt B D E $1,023,667 $823,667 $2,500,007 $1,778,978 $ 878,889 $30,000,000 $10,000,000 $ 9,000,000 $35,000,000 $30,000,000 Shareholders Equity $ 10,476,809 $
Net Income Total Debt B D E $1,023,667 $823,667 $2,500,007 $1,778,978 $ 878,889 $30,000,000 $10,000,000 $ 9,000,000 $35,000,000 $30,000,000 Shareholders Equity $ 10,476,809 $ 7,302,111 $30,555,876 $11,586,809 $13,478,809 $ 40,476,809 $17,302,111 $ 39,555,876 $46,586,809 $43,478,809 Total Capital Debt Rate Tax Rate 13.10% 21% 14.40% 21% 14.60% 21% 13.70% 21% 8.50% 21% 10 points Save Answer You are an analyst at an local investment banking firm. You are looking at 5 companies in the beverage sector that are your clients. Which company can use leverage (ie. increase debt we are not concerned with financial flexibility or bankruptcy as these are rock solid companies) to increase it's return to shareholders. Since investment banks generate revenues by being managers on a debt issuance, your boss Mr. Lollipop Lips PHD. would be so happy if there is a company that may be interested in issuing debt O Company A O Company B O Company C O Company D O Company E
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